asked the Minister for Finance if, in view of the fact that the current price of the present issue of land bonds is standing below 90, he will immediately issue new land bonds bearing interest of at least 13 per cent so that they will not fall below par for a reasonable period.
Ceisteanna—Questions. Oral Answers. - Land Bonds.
18.
The current issue of land bonds was created to meet the needs of the Land Commission for the year ended 31st December, 1973. It is not intended to create a new issue of bonds before the expiry date. When a new issue is being created regard will be had to the provisions of section 4 (3) of the Land Bond Act, 1934, under which the Minister for Finance is required, when fixing the rate of interest, to have regard to the prices at which the latest issue of National Loan and previous issues of land bonds are quoted on the stock exchange.
Is the Parliamentary Secretary aware that the 9¾ per cent bonds which, I understand, are the current issue, were quoted yesterday on the Dublin Stock Exchange at 86 and that persons who are being paid for land currently are getting £86, less commission, whatever that would amount to, for every £100 that they agreed with the Land Commission? If no further bonds can be issued before December 31st, will the Parliamentary Secretary arrange that people who are engaged now in selling land to the Land Commission will be paid with the new issue on the 1st January rather than with the current issue?
Mr. Kenny
I will bring those points to the attention of the Minister and he will answer the questions raised when he is available to do so.
Where is the Minister?
He is allowed to go to Monaghan which may be more than can be said in relation to Deputy O'Malley.
Can the Parliamentary Secretary say whether arrangements might be made to have these land bonds redeemable at par three years after issue especially since they are the only Government issues not redeemable on par? This would solve the problem of all the bonds being put on the Stock Exchange at the same time and, consequently, being reduced in price.
The Deputy is making a statement.
Mr. Kenny
The Deputy's suggestion will be considered by the Minister.
He is running around Monaghan.